Q&A Regarding Pretax Deduction of Asset Losses in China
Q: | How is the asset defined in the term of ‘asset losses? |
A: |
Assets refer to assets owned or controlled by an enterprise that are used for business management activities. Including monetary assets, non-monetary assets, and investments. |
Q: | What are the monetary assets? |
A: |
Cash, bank deposits, accounts receivable and prepayments, notes receivable, various types of advances, and intercompany transactions. |
Q: | What are the non-monetary assets? |
A: |
Inventory, fixed assets, intangible assets, construction in progress, productive biological assets. |
Q: | What are the types of investments? |
A: |
Bond investment, equity investment. |
Q: | How are asset losses classified in corporate income tax management? |
A: |
Asset losses are divided into actual asset losses and statutory asset losses. |